Today, wherever you are, you can buy any product you covet, regardless of where the supplier or merchant is based or operating from. You can get your order delivered to your preferred address or location. Payment is also not a problem because most merchants usually have different global payment systems you can choose from.
Global Payment Systems
Basically, global payment systems are divided into these categories. These are:
Push payment method - Under this system, a customer has to actively send the merchant the money after it has been requested. The customer also has to make the effort to put forward a discrete payment. Examples of this payment method include cash, wire transfer, and check payments.
Pull payment method – These methods are better suited for subscription businesses since they enable the merchant to actively withdraw the money themselves. For this system to work, formal agreements have to be put in place first. Once everything is set, a merchant has all the information and agency needed to withdraw the money from a customer’s account.
Global Payment Systems
Basically, global payment systems are divided into these categories. These are:
Push payment method - Under this system, a customer has to actively send the merchant the money after it has been requested. The customer also has to make the effort to put forward a discrete payment. Examples of this payment method include cash, wire transfer, and check payments.
Pull payment method – These methods are better suited for subscription businesses since they enable the merchant to actively withdraw the money themselves. For this system to work, formal agreements have to be put in place first. Once everything is set, a merchant has all the information and agency needed to withdraw the money from a customer’s account.
Pull Payment Methods
Pull payment methods are predominantly the most used payment system today. Below are the most popularly used pull payment methods:
Credit cards. Credit cards are great for recurring payments since payments made against a credit card are guaranteed up front which means any settlement issues are avoided. In addition, once a customer agrees to have the merchant use their credit card numbers, with the former’s approval, the business or company can keep pulling from that card on a recurring basis.
Bank transfers. Under this payment method, a customer gives the merchant their bank account details. The merchant then pulls money directly from their accounts through a secure network connection. Just like with credit cards, most of direct-debit methods allow business owners to pull payments on a recurring basis. The primary benefits of using bank transfers are lower fees and the popularity of this type of payment method around the globe.
E-wallets. Lastly, e-wallet, also known as electronic wallet, is a third-party payment method funded by a variety of means. With this system, there’s always another payment method that sits behind it such as a credit card or a bank transfer. However, the company providing the e-wallet handles all the complexity, security, and process of the payment transaction. PayPal is the most popular e-wallet used today. Google Wallet, Amazon Payments, and Apple Pay are some of the current rising contenders.
Read more about global payment systems on http://www.business.hsbc.ae/en-gb/payments/productfamily/global-payables.
Pull payment methods are predominantly the most used payment system today. Below are the most popularly used pull payment methods:
Credit cards. Credit cards are great for recurring payments since payments made against a credit card are guaranteed up front which means any settlement issues are avoided. In addition, once a customer agrees to have the merchant use their credit card numbers, with the former’s approval, the business or company can keep pulling from that card on a recurring basis.
Bank transfers. Under this payment method, a customer gives the merchant their bank account details. The merchant then pulls money directly from their accounts through a secure network connection. Just like with credit cards, most of direct-debit methods allow business owners to pull payments on a recurring basis. The primary benefits of using bank transfers are lower fees and the popularity of this type of payment method around the globe.
E-wallets. Lastly, e-wallet, also known as electronic wallet, is a third-party payment method funded by a variety of means. With this system, there’s always another payment method that sits behind it such as a credit card or a bank transfer. However, the company providing the e-wallet handles all the complexity, security, and process of the payment transaction. PayPal is the most popular e-wallet used today. Google Wallet, Amazon Payments, and Apple Pay are some of the current rising contenders.
Read more about global payment systems on http://www.business.hsbc.ae/en-gb/payments/productfamily/global-payables.